DEAR CREDIT.

Auckland Star, Volume LXII, Issue 253, 26 October 1931, Page 4

DEAR CREDIT.

COSTLY RUSSIAN FINANCE:.

THIRTY-SIX PER CENT,

(From Our Own Correspondent.)

NEW YOKE, September 10. Two million of Russian trade bills, maturing in. eighteen months, were recently offered to a New York bank at an annual rate of 36-per cent. Of the total, .2 to 3 per, cent would have to be paid, to, an .intermediary, which'would still leave ; a handsome: return to the bank," had it chosen to do the business.

< Within recent.weeks the irate has come down somewhat as a result _of .the increase van*.the' jdeniand for business of the in the foregoing parapjapn., Ai'mftmber of a (prominent wvestmStiif firm J{ pith has been handling Russ^an L^bnss^^slsjn r a restricted scale, but wllh\gre , a%Tsati§fli.ction, remarked that his firm; Swould •_ be iin an enviable position to-day if it had- handled ■ Russian.deals exclusively. ; .~' ' .','"' "/, . .- ...Thus far the Soviets have met all their engagements (promptly and faithfully.'Plans are being worked out.to'increase Russian business in the United States by means of a financial'institution to-be organised in New-'Yoi'k.fbr the. purpose.of. engaging in the.business of discounting and re-tlis-counting .acceptances of the Amtor-g Trading Corporation in the States and those of similar Soviet trading organisations in Europe. •'.